The relationship between BSkyB, the UK's largest digital TV company, and systems integrator EDS, which was commissioned to install a cutting-edge CRM software system, has ended in court.

Download this free guide

Infographic: Future-proofing UK technology

The shortage of technology and digital skills poses a real threat, affecting business leaders, owners and workers in some way every single day. Whilst technology provides an exciting economic and social opportunity, the current potential of the UK technology industry is restricted by the lack of tech and digital talent available. This presents a challenge for the future of UK business and our economy. Long term, we can put faith in changing educational curriculum but, for now, we believe the people who can work towards solving this challenge are already out there.

By submitting my Email address I confirm that I have read and accepted the Terms of Use and Declaration of Consent.

By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.

You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

BSkyB has filed a legal claim against EDS for "deceit, negligent misrepresentation and breach of contract" during the implementation of a multimillion-pound CRM system to support operations at BSkyB's call centres.

The media giant rolled out the system with EDS in 2000, but severed the relationship in early 2002 and, after failed discussions, decided to take legal action.

The original contract was worth $109m (£60m), according to an EDS spokesman. He said, "We're going to vigorously defend our position, and there will be a counterclaim in the several millions of pounds for unpaid bills. It's absolutely outrageous."

At issue is a system that was to be built around CRM software from Chordiant Software, which specialises in business-to-consumer applications. The system, running on Sun Microsystems hardware, was to be housed at BSkyB's contact centres in Livingston and Dunfermline in Scotland, where as many as 1,000 agents field calls at any given time.

A BSkyB spokesman declined to offer details about the project or discuss the amount of money the company is seeking. However, in an announcement in 2000 about the EDS-Chordiant roll-out, BSkyB said it planned to integrate previously disparate data sources and create more comprehensive customer profiles.

Richard Freudenstein, the company's chief operating officer, said at the time, "EDS provided a technically advanced solution that will make a valuable contribution to BSkyB's drive to lead innovation in customer service and maintain Sky Digital's industry-leading levels of customer retention."

In addition, subscribers would be able to access account, billing and other information and services via agent, phone, the web or the television service itself.

However, according BSkyB's court statement, the relationship between the two companies ended after EDS "failed to perform its contractual obligations". After the severance, BSkyB subsidiary Sky Subscribers Services, which supports the company's operations, took over the integration work for the project.

BSkyB has spent $310.8m on software, systems integration, infrastructure costs and the revamp of the call centre facilities. Moreover, the company said it expects to spend another $91m during the next four years to finish the current implementation and continue to "maintain leading-edge" CRM systems for its growing subscriber base, which now stands at about 7 million customers.

The BSkyB spokesman confirmed that the Chordiant software is still running but declined to offer further details on the implementation's status until completion.

0 comments

Register

Login

Forgot your password?

Your password has been sent to:

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy